The Scott's Sell Scottsdale

Are you confused??   What exactly is the difference between a ‘short sale’, ‘foreclosure’ and ‘Real Estate Owned Property (REO)’? How do the banks/lenders handle each type of scenario?  

• · The  Short Sale: involves buying a house for less than the amount the seller owes the lender. To qualify for a short sale, the property must be the seller’s primary residence and he must apply with the lender proving hardship. The buyer is actually negotiating with the band/lender. Do not assume that the property is a bargain. With some due diligence research comparable houses are selling for, check to see whether a foreclosure notice has been filed for the property and who owns the loan or loans, and how much is owed. The home is often sold ‘as is’ as neither the seller or bank are willing to make repairs or provide any warranties. However, the buyer should have a home inspection to understand what the condition of the property is. Only a small percentage offers on these homes actually get approved. The process can be time-consuming and frustrating for all parties involved.

• · The Foreclosure: is the legal process by which a mortgage company can obtain legal ownership of a property.  The home owner is relinquished from any right to the property and evicted from the premises. Foreclosure can begin a soon as a home owner is late with the mortgage payment. In Arizona, the lender appoints a trustee to handle the paperwork, The trustee first records a ‘Notice of Trustee Sale’ - the home is to be sold no sooner than 90 days from the recording date of the notice. If the home is not reinstated by the owner during this time, the trustee will conduct a sale of the property. The home is sold to the highest bidder (which can also be the mortgage company). Again, understand what you are purchasing, a home inspection is a good idea before you make any bids. If the bidder successfully wins, he until 5:00 p.m. of the following day (assuming that it is not Saturday or a legal holiday) to pay the remaining balance in cash or other acceptable forms of payment as determined by the trustee. Title is conveyed to the winning bidder by a trustee's deed. The auction is not a place for the feint hearted.

• · The Real Estate Owned (REO): refers to a property that has gone back to the bank, or the mortgage company, after an unsuccessful foreclosure auction. A bank-owned property is typically restored to a salable condition. Appliances are often included with an REO purchase. All liens against the property or any unpaid taxes or fees are settled once the property becomes an REO.

The Office of Federal Housing Enterprise Oversight (OFHEO) is an excellent source of real estate consumer information. Here you can research Mortgage Basics,  Mortgage and Housing Fraud, Foreclosure Avoidance, view the latest Housing Price Index across the US, research and compare many of the major metro areas on a quarterly price index and much more.  Check out your state/city.

Another source of valuable for real estate information and resources is the National Association of Realtors (NAR).  Research the latest news affecting the real estate industry or review their guides to Home Buying or Selling. 

The Arizona Association of Realtors (AAR) offers a “Buyers Advisory” (pdf file) detailing many  of the issues of purchasing property here in Arizona. Including Common Documents a Buyer Should Review; Common Physical Conditions in the Property a Buyer Should Investigate;  Conditions Affecting the Area Surrounding the Property the Buyer Should Investigate; Additional Methods to Obtain Information About a Property as well as Information about Fair Housing and Disability Laws.  The AAR also provides a “Home Buyers Checklist” (pdf file) answering questions you may have while searching for your home.

It is important to be an educated buyer when making an important purchase such as real estate.  Select a Realtor who knows the local real estate market and one who will strive to ensure that you are an informed and satisfied buyer.The Buyers Toolbox on our web site offers additional useful information related to the process of purchasing a property.

When looking to buy and/or sell, or know of anyone that is, feel free to contact us.

Gary and Claudia Scott, REALTOR®, GRI
Call Toll Free at 866-464-2140
or
e-mail - Garyandclaudia@cox.net
www.AZ-real-estate-sales.com

 

The 2008 real estate market has been a roller coaster as the challenging economic times have affected the country. A multitude of factors contributed to this pendulum swing - the hyper activity of buyers jumping in to the market; bad mortgage lending to borrowers at all levels eventually leading to a flood of short sales and foreclosures. Consumer debt, the unstable economy; and the upcoming presidential election are also important factors.

Somehow each trip to the Grand Canyon is unique as the scenery seems to constantly change presenting a living art work that is breathtaking.  Photos do not really do it justice.  One must actually stand at the rim looking out or hike down into the canyon to experience the dimension of vastness.  The depth and immense size can overwhelm your senses.

I know I said that photos can't really portray the spender of this masterpiece but....

these photos will inspire you as you view beauty and majesty of the Grand Canyon  >>>>>>>>  Slide Show

 Definitely worth a trip(s) to both vistiors and for those of us who live in Ariozna.

When looking to buy and/or sell, or know of anyone that is, feel free to contact us.
Gary and Claudia Scott, REALTOR®, GRI
  Call Toll Free at  866-464-2140          
or e-mail - Garyandclaudia@cox.net
www.AZ-real-estate-sales.com

 

Scottsdale Real Estate Market Statistics:

Real estate closing in Scottsdale, Arizona from January 1, 2008 through September 30, 2008

Number of homes sold/closed:    MLS Data Extracted from flexmls®

 

Scottsdale Area cities by zip code:
Carefree	85377	Paradise Valley	85253
Cave Creek	85331	Rio Verde	85263,85264
Fountain Hills	85268	Scottsdale	8525,85254,85258,85259,85260
North Scottsdale	85255,85262,85266	South Scottsdale	85251,85257

 

2008	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	SEP	OVERALL TOTAL SOLD
Total closed in Scottsdale Area	388	433	510	560	595	587	572	505	436	4,596

The year began slowly and picked up monthly throughout the summer months.  The sales did slow in September. So far, October the inventory is decreasing in most of the Scottsdale zip codes.  

The good news is that the rate of decline in property values has slowed and is showing signs of leveling off.  At 14%, Scottsdale registered the lowest decline in home values of all cities in the greater Phoenix metro area over the past year.  As the 'sophisticated heart of the state', Scottsdale remains a highly desirable place to live with a world class draw. The current lower home prices make this an excellent time to afford to purchase a property in Scottsdale now.

Keep in mind that statistics and business that we see recorded today is a result of market conditions and activity in the past.  That is what makes forecasting so difficult. There are many outside factors that will affect the real estate market over the next few months; including political elections, the economy, inventory levels and mortgage rates. Let's keep watching the trends.

As Realtors® , we stay educated on the market and industry trends so we can provide the best possible information to the buyer or seller so they can make an informed decision.

Gary and Claudia Scott, REALTOR®, GRI
Call Toll Free at 866-464-2140 or e-mail at Garyandclaudia@cox.net
www.AZ-real-estate-sales.com 

A delightful evening on a warm October night.  That best describes our night out with good friends with whom we went to see "Enchanted April" now playing at the  Herberger Theatre.  The Arizona Theatre Company features several plays and musicals at the Herberger Theatre (located in downtown Phoenix) throughout the year. We have attended several over the years and have not been disappointed yet.

We have found that is convenient to park, have dinner at the Arizona Center and walk a short block to the theatre.  The Arizona Center is located in the heart of downtown Phoenix is an open-air oasis of dining, unique shopping at a variety of specialty retailers, AMC 24 movie theaters, ponds and gardens.  It is a fun place to explore itself.  We chose Sam's Cafe which has a very scenic view from the outdoor patio, with rushing water and an abundance of miniature lights adorning the many palm trees on the grounds.  The food is excellent and reasonably priced as well.

The play itself was very entertaining with the story revolving around some disillusioned post World War 1 London housewives that decide to take a much needed vacation without their husbands to Italy.  The plot takes a lot of interesting turns and, although it seemed to start slowly, it quickly captures your imagination with the witty actors and beautiful scenery. We highly recommend it, you are sure to leave the theatre smiling.

Gary and Claudia Scott, Realtors - Scottsdale Arizona
AZ-real-estate-sales.com 
garyandclaudia@cox.net

Thanks to Dan Hray of Chase Bank for this update: 

Quite a few people are trying to understand why current mortgage rates are climbing despite the government's best efforts.  I believe this can be summed up in one word -- uncertainty. Here is some background:

Lenders in the London Interbank Offered Rate (LIBOR) market are uncertain that counterparts will pay back loans, thus producing higher financing rates while the U.S. Federal Reserve's federal-funds target rate has been lowered to 1.5 percent. This makes mortgages less attractive to hold since most leveraged investors borrow money at or above LIBOR.

Investors are uncertain whether the government's rescue package will be successful.  Not believing the government's implied guarantee, foreign investors have shied away from Fannie Mae and Freddie Mac mortgage-backed securities (MBS). Wall Street is wondering how Fannie Mae and Freddie Mac will be able to buy mortgages for their portfolios when their cost of borrowing continues to rise.  Only $5 billion of MBS have been purchased so far.

Elevated uncertainty leads to volatility.  Volatility is at historical highs in both the fixed income and equity markets. Volatility adversely impacts mortgage prices (rates) as cash flows from prepayment become less predictable. Investors are also uncertain as to the amount of additional U.S. Treasury debt that will be required to fund the government rescue package.  Long term rates have already risen which impacts mortgage rates.  Only short term Treasury securities have benefited from this environment and the Fed's 50bp rate cut.

Summary I expect mortgage rates to be volatile through the end of 2008 as both investor and dealer risk tolerance is low.  However, I believe mortgage rates will edge lower over time due to the slowing economic landscape and the extraordinary steps that the government is taking to restore confidence to the credit markets.

Dan W. Hrey
Mortgage Officer
Paradise Valley, AZ
Office: 480-308-5316
Cell: 480 220-4858
Toll Free: 888-242-7388 ext 5316
dan.w.hrey@chase.com

 

 Contact Gary and Claudia Scott for all of your Scottsdale Arizona Real Estate needs. 

garyandclaudia@cox.net - www.AZreal-estate-sales.com